MARKET TALK: Genentech, Xoma Hear From The Disgruntled
05 Mar 09:28
Edited by Thomas Granahan
Of DOW JONES NEWSWIRES
(Call Us: 201 938-5299; All Times Eastern)
MARKET TALK can be found using code N/DJMT
9:27 (Dow Jones) Genentech (DNA), along with development partner Xoma (XOMA),
is facing a class-action suit that alleges the companies misled investors about
when psoriasis drug candidate Xanelim would be submitted for FDA review. The
complaint was filed on behalf of anyone who bought Xoma stock between May 24,
2001, and Oct. 4, 2001, and seeks to recover losses suffered by the
shareholders due to allegedly misleading statements made by Xoma and Genentech
about Xanelim. Genentech and Xoma said in November 2001 they would delay their
filing of a biologic license application with the FDA. The companies originally
said they planned to make the BLA filing by late 2001 or early 2002, but moved
the application date to the summer and added data from an additional study.
(CS)
9:17 (Dow Jones) Alltel (AT) Chairman and Chief Executive Joe Ford will
receive monthly retirement payments totaling $2.5 million a year for the rest
of his life when he retires as CEO later this year. In lieu of benefits under
the company's defined benefit pension plan, Ford will receive a monthly payment
of $208,333 for the rest of his life. If survived by his wife, she would
receive 50% of the monthly payments for the rest of her life. Alltel's board
may, with Ford's consent, accelerate the timing of the benefit and make an
"actuarially equivalent single-sum payment." In January, the wireless and
local-telephone company announced that Ford would step down as chief executive
on July 1 but retain the position of chairman. (RG)
9:12 (Dow Jones) Feeling pretty psyched about the run in stocks? How's this
to lower your spirits: From its peak on March 6, 2000, (5132) to its low on
Sept. 21, 2001, (1387), the Nasdaq Comp dropped 3745 points. At Monday's close,
it had only gotten back 472 points. "In other words, the Nasdaq will only have
to increase by 176%, or rally almost threefold, to break even," points out
Anderson & Strudwick's Kent Engelke. (TG)
9:01 (Dow Jones) Salomon Smith Barney's Tobias Levkovich, like so many others
these days, is feeling better about the stock market. He ups his target on DJIA
to 11400 from 10800, citing likelihood "Old Economy" industrial names will
continue to outperform. If you're waiting for a better time to get in, you may
want to reconsider, too. Over the next few weeks, he sees more companies
letting on that things are improving, so pullbacks in stocks may not be that
significant. "Another powerful rally could occur in April as upward earnings
revisions mix with potential breakouts on the charts, thereby bringing in the
momentum money," he says. (TG)
8:55 (Dow Jones) Short Treasurys are under pressure, continuing the
curve-flattening and propensity to sell that dominated yesterday's session
before the end-of-day short-covering and retail buying caused a partial
recovery. More of the same today, say traders, with plenty of reasons to test
the bottom of the range, but little incentive to break through it. 5.05% in the
10-year and 3.25% in two-year the most recent psychological resistance points.
(SV)
8:49 (Dow Jones) Nothing like a good coincidence. Tsakos Energy (TNP), a
Greek shipping company, begins trading today after pricing an IPO of 6.35
million shares at $15, below estimates. The Tsakos deal, led by J.P. Morgan,
comes exactly one year after the last Greek shipping IPO, for Stelmar Shipping
Ltd. (SJH). Potentially good news for Tsakos: Stelmar priced its IPO at $12 and
closed Monday at $16.15, for a 35% year gain. (RJH)
8:39 (Dow Jones) United Airlines mechanics are expected to vote in favor of a
tentative contract Tuesday, allowing the UAL Corp. (UAL) unit to avert a
threatened strike. With an immediate raise of up to 37%, the deal would make
the airline's 13,000 mechanicsamong the highest paid in the industry. The pact
would also allow the Machinists union to vote independently on any future wage
givebacks, rather than going along with other United workers. UAL shares soared
20% Monday on expectations of the approval. (SON)
8:34 (Dow Jones) Published rumors that ConAgra Foods (CAG) is close to
selling its meat division "have merit," Credit Suisse First Boston agribusiness
analyst David Nelson tells clients. After seeing the item in Cattle Buyers
Weekly, Nelson said he hears Tom Hicks of the Hicks, Muse buyout fund, Phil
Anshutz of Quest Communications (Q) and hockey-team owner George Gillett are
offering to buy 51% of ConAgra's beef and pork operations. Company officials
couldn't immediately be reached for comment. (RLG)
8:30 (Dow Jones) Things look just a bit sluggish in stocks Tuesday morning
(you can hardly hold that against them after their recent run), but Wall Street
seems to be in a generous mood. While such dramatic upticks are often followed
by at least a brief pause, the argument can probably made just as easily that,
on a short-term basis, the path of least resistance for stocks is up. Big day
on the retail-earnings front - Costco (COST) meets views, and BJ's Wholesale
(BJ) and Staples (SPLS) top expectations. Meanwhile, Wall Street will be
eagerly waiting on ISS' ruling on the Hewlett-Packard (HWP)/Compaq (CPQ) deal,
expected later this afternoon. The consensus seems to be that a 'no' vote will
kill the deal, and a 'yes' vote makes things interesting. Non-manufacturing ISM
should show some improvement. (TG)
(END) DOW JONES NEWS 03-05-02
09:28 AM |
